Remy Briand: Shares and Five-Percent Inclusion

remy briand: The successful implementation of the initial five-percent inclusion of China A shares has been a positive experience for international institutional investors and has fostered their appetite to increase further their exposure to the Chinese mainland equity market, said Remy Briand, MSCI Managing Director and Chairman of the MSCI Index Policy Committee, in a press release on Friday, according to Global Times China. Large cap shares increased in three steps rather than two steps, as originally proposed, to alleviate potential pressure on implementation dates, the index provider said. Stock connect has proven to be a robust channel to access A shares. Additionally, a proposal to add Chi Next on the list of eligible stock exchange segments for MSCI received wide approval. At Friday's close, the benchmark Shanghai Composite Index closed up 1.80 percent to 2,994.01, the smaller Shenzhen index ended up 1.50 percent higher and the Chi Next index, China's NASDAQ-style board, rose 2.10 percent, following the MSCI announcement. Upon completion of the three-step implementation, there will be 253 large and 168 mid cap China A shares, including 27 from Chi Next on the basis of MSCI, representing a 3.3 percent weight growth, the press release said. (news.financializer.com). As reported in the news.